Strategy 2017-10-24T03:30:00+00:00

STRATEGY

 Ideal Arris Opportunities Possess Some or All of the Following:

  • Off-market or poorly marketed transactions
  • Strong local operating sponsor and/or manager
  • High barriers to entry markets
  • Discount to replacement cost
  • Value added execution strategy

Arris seeks to generate superior risk-adjusted returns through deploying capital in four distinct formats:

Sponsor Co-Investment – Providing capital for transactions where Arris serves as the Sponsor or Co-Sponsor and is required to provide a minority co-investment alongside 3rd party majority equity

Sponsor Equity Capital – Providing majority equity capital for smaller transactions where Arris serves as the sponsor or co-sponsor

Joint Venture Co-Investment Equity Capital – Providing non-control joint venture equity where Arris partners with proven operating sponsors to acquire real estate with value added business plans. Arris sources these transactions and invests equity alongside larger institutional funds who retain Arris to asset manage the ventures on their behalf but retain major decision control rights.

Joint Venture Equity Capital – Providing control joint venture equity for smaller transactions with 3rd party operating sponsors.

Arris targets transactions its investment programs which possess some or all of the following characteristics:

  • Located in Western U.S. markets with outsized prospects for population and job growth
  • Assets with a value-add execution strategy (redevelop, reposition and/or re-tenant)
  • Evidence of small to middle-market (under $15 million of equity) sector driven inefficiencies in equity or debt provision
  • Opportunities to create cash flow rather than buy it, particularly in major metro areas
  • Key metric is unleveraged stabilized yield on cost; seeking 150+ basis points spread over exit cap rates
  • Proprietary sourcing capabilities based on 19+ years of relationships with owners, operators, brokers and lenders